The Bitcoin price faces the risk of dropping below $28,000, with a significant support level at $27,000 offering liquidity for the potential ascent towards $30,000.
The Bitcoin price has continued its descent below the $28,000 mark, driven by the recent developments regarding the approval of Ethereum futures exchange-traded funds (ETFs) in the United States. Following the anticipation and excitement surrounding this news, which emerged last Friday, and the subsequent commencement of live trading on Monday, a correction phase unfolded due to heightened profit-taking activities.
It is now expected that BTC will further extend its downward trajectory, potentially revisiting the $27,000 level. This price point is seen as an opportunity for bulls to gather additional liquidity, with the aim of reestablishing an upward trend in the market.
Bitcoin Price Displays Profitable Pre-Halving Declines
Bitcoin is poised to undergo a significant event in April 2024 known as a halving, during which miner rewards will be cut in half, from 6.25 to 3.125 BTC per block. This halving event is programmed into the Bitcoin algorithm and serves the purpose of controlling inflation by reducing the available supply of the world’s largest cryptocurrency.
Historical data has consistently demonstrated that this reduction in supply tends to trigger a rally in Bitcoin’s price after the halving, driven by shifting supply and demand dynamics. Investors often buy Bitcoin in anticipation of the event to take advantage of the price surge that typically follows.
A well-known crypto trader by the handle @rektcapital has advised investors to make the most of any potential declines in the price before the halving, as this can position them to benefit from the subsequent upswing in value post-halving.
Make the most of any Pre-Halving downside
— Rekt Capital (@rektcapital) October 4, 2023
Altcoin Sherpa, an anonymous trader and analyst, recently expressed the view that the Bitcoin price has likely reached a short-term bottom. This assessment is based on a chart shared by Altcoin Sherpa on their Twitter account. Despite a pullback below the $28,000 mark, the four-hour chart suggests that Bitcoin’s overall trend remains bullish.
$BTC: wick in late August tagged, price is probably short term bottomed.
— Altcoin Sherpa (@AltcoinSherpa) October 3, 2023
In another post on X, Altcoin Sherpa stated, “I maintain the view that $27,000 is likely to be revisited—a level with significant confluence.” A potential retest at $27,000 could make Bitcoin more appealing to investors who had been on the sidelines and might have missed the abrupt surge beyond $28,000 earlier in the week.
$BTC: I still think that 27k is going to come….interesting level w. lots of confluence. Should see a bounce around there. Look how all the EMAs on the 4h and 1D are all lined up there. #Bitcoin pic.twitter.com/ffvXY6Dkii
— Altcoin Sherpa (@AltcoinSherpa) October 4, 2023
Bitcoin Price Forecast: Can Bull Market EMAs Sustain the Upward Momentum?
Bitcoin’s price briefly surged above all the significant bull market moving averages, encompassing the 21-week Exponential Moving Average (EMA) in red, the 100-week EMA in blue, and the 200-week EMA in purple.
However, Bitcoin has since retreated below the 100-week EMA, potentially complicating the bullish scenario. Presently, the 21-week EMA remains intact at $27,281, but if it is breached, there may be a potential sell-off, leading the Bitcoin price to retest the next significant support level at the 200-week EMA, situated at $25,645, before embarking on its next notable ascent.
BTC/USD | Tradingview
The Moving Average Convergence Divergence (MACD) indicator, while maintaining a position above the neutral 0.000 threshold, is currently displaying a sell signal. This suggests that sellers should not be underestimated in the current market conditions.
With this in mind, traders should closely monitor how Bitcoin responds to the support level around $27,000. This critical level is likely to determine the scope of the upcoming rebound, whether it pushes towards $30,000 or retraces to test support at either $25,645 or $20,000. Some analysts speculate that the latter level, at $20,000, could potentially mark the initiation of the next bullish trend.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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